Key Takeaways
- Dhoot Transmission IPO was subscribed 74.21 times overall after receiving 1.85 billion bids
- The QIB portion recorded 212.92 times subscription, leading institutional demand
- The company raised ₹918.26 crore from 72 anchor investors before listing
Dhoot Transmission’s initial public offering received bids for 1,85,19,71,585 shares against 2,49,56,363 shares offered, resulting in an overall subscription of 74.21 times. The IPO opened on 10 August 2026 and closed on 12 August, with the price band set at ₹829 to ₹871 per share.
Institutional Demand Drives Dhoot Transmission IPO
Qualified institutional buyers showed the strongest demand for the Dhoot Transmission IPO, with their portion subscribed 212.92 times. The non-institutional investor category was subscribed 51.93 times, while the retail individual investor portion recorded a subscription of 8.12 times.
The IPO comprised a fresh issue of equity shares worth up to ₹1,400 crore and an offer for sale of 1,91,37,602 shares by existing shareholders BC Asia Investments XV and Mangalam Capital. The offer for sale was valued at up to ₹1,666.89 crore.
Before the Dhoot Transmission IPO opened, Dhoot Transmission raised ₹918.26 crore from anchor investors on 7 August. The company’s board allotted 10.54 lakh shares at ₹871 each to 72 anchor investors.
The fresh issue proceeds are intended for several business purposes. The company plans to use ₹464.8 crore to repay certain outstanding borrowings and ₹301.77 crore for investments in subsidiaries, including Dhoot Autocomponents, Dhoot Automotive Systems, and Dhoot Transmission UK.
Another ₹150 crore has been earmarked for establishing a new wiring harness manufacturing plant at Shoolagiri in Hosur, Tamil Nadu. The remaining proceeds are intended for acquisitions and general corporate purposes.
Wiring Harnesses Remain Core Revenue Driver
Dhoot Transmission operates in the electrical and electronics segment, designing, engineering, manufacturing, and supplying wiring harnesses and electrical distribution systems for automotive and non-automotive applications.
Its product portfolio includes wiring harnesses, battery packs, sensors, electronic controllers, automotive switches, terminals, connectors, and power supply cords. The company supplies products for both internal combustion engine and electric vehicle platforms.
Wiring harnesses remained the company’s largest revenue contributor in FY26, accounting for 77.08% of total revenue. Other products contributed 22.92%, while products related to electric vehicles accounted for 24.17% of total revenue.
The company is also developing additional products, including side stand sensors and temperature sensors.
For the 12 months ended 31 March 2026, Dhoot Transmission reported consolidated sales of ₹4,524.96 crore and net profit of ₹396.65 crore.
The strong response to the Dhoot Transmission IPO comes as the company seeks additional capital for debt repayment, subsidiary investments, manufacturing capacity, and acquisitions. The allocation of funds also indicates the areas where Dhoot Transmission expects to direct capital following the public issue.
The subscription figures show particularly strong institutional participation, with the QIB category receiving more than 212 times the shares available to it. The overall issue attracted bids significantly above the number of shares offered, making institutional demand the largest component of the IPO response.
Visit Business Viewpoint Magazine to read more.
